Marketmind: Stocks clocking best week of the year

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N.S. flood victim surprised by apartment makeover | SaltWireMarkets are betting central banks are done hiking interest rates, inflation is falling and corporate earnings are robust - and they now have just one more hurdle to clear to complete what's set to be the best week of 2023.

In the light of Thursday's surge in stocks and bonds - based largely on an assumption the Federal Reserve, European Central Bank and Bank of England have now ended their rate hike campaigns - signs of a cooling labor market may be welcomed. And while S&P500 aggregate annual earnings growth for Q3 is tracking an impressive 5%, LSEG data shows Wall Street has downgraded fourth-quarter earnings growth estimates to 7.2%, down from 11% just before the reporting season began.

U.S. Treasury and equity market volatility gauges have subsided to their lowest levels since early last month. Elsewhere, Chinese stocks also caught a bid at last after a survey showed services activity improved slightly last month, even though new orders rose at their slowest in 10 months and employment stagnated.The dollar held steady ahead of the payrolls release.

 

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